Core Viewpoint - Jianghuai Automobile (SH600418) is expected to report a net loss of approximately 680 million yuan for the first half of 2025, a significant decline compared to a net profit of about 301 million yuan in the same period of 2024 [1][2]. Financial Performance - The projected net profit attributable to the parent company for the first half of 2025 is around -680 million yuan, with a non-GAAP net profit expected to be approximately -820 million yuan [1]. - In the first half of 2024, the net profit attributable to the parent company was about 301 million yuan, and the non-GAAP net profit was approximately 91.87 million yuan [1]. Reasons for Performance Decline - The decline in performance is attributed to the increasingly complex international situation and intensified competition in overseas automotive markets, leading to a decrease in export business [2]. - The high-end intelligent new energy passenger vehicle project is still in the capacity ramp-up phase and has not yet achieved economies of scale, contributing to the expected losses [2][5]. Growth Potential - Despite current performance pressures, the collaboration with Huawei on the high-end new energy passenger vehicle brand "Zun Jie" is viewed as a new growth driver for Jianghuai Automobile [2]. - The Zun Jie S800, launched on May 30, 2023, has shown strong market interest, with 1,600 pre-orders within 24 hours and over 6,500 in the first month [3]. - The market for vehicles priced above 600,000 yuan is estimated to have an annual sales volume of around 450,000 units, with Zun Jie expected to capture approximately 20% of this market, translating to annual sales of 80,000 to 100,000 units [3]. Production Capacity - The Zun Jie S800 began mass production on June 18, 2023, with a target of reaching a monthly production capacity of 3,000 units by September and aiming for 4,000 units by the end of the year [5]. - The project is currently in a phase of high investment and capacity ramp-up, which is one of the main reasons for the anticipated losses in the first half of 2025 [5].